Simplify Child's Future: Invest in Direct Mutual Funds, Avoid Complex Plans

• Parents can invest in low-cost direct mutual funds for children, avoiding complex "children's plans" or insurance schemes.
• A minor cannot legally own a mutual fund account; a parent or legal guardian manages the investment in the child's name until they turn 18.
• Direct mutual funds offer lower expense ratios, compounding significant savings over long investment horizons like education.
• Investment decisions should align with the goal's timeline (e.g., equity for 10+ years) rather than "child-specific" fund labels.
• Income from a minor's investment is clubbed with the parent's income for tax purposes until the child turns 18, when control and tax liability transfer.

Why It Matters: Invest early and simply in direct mutual funds for your child's future, leveraging time and low costs.